Testing new levels

By GG Analyst in Reviews 0 Comment

EUR/USD

Wall Street finished one more day at record levels. Stocks are still being supported by favourable US statistics and bulls seem not to worry about the upcoming tapering. As if the festival could last forever. Yes, they’ll think about all this and the payback later and today the US markets are celebrating Thanksgiving Day, so there will be little activity in the afternoon. Yesterday’s purchasing of US assets was boosted by the quite strong data on weekly unemployment claims. They decreased to 316K despite the expected growth from 326 to 331. This index has almost completely recovered from the upsurge in more…

From zero interest rates down to negative ones?

By GG Analyst in Reviews 0 Comment

EUR/USD

EURUSD is getting closer to last week’s highs, again trying to consolidate above 1.3550. From the technical viewpoint, there are no serious resistances right up to 1.3750/80. Last week the pair couldn’t go higher because of Bloomberg’s article about possible introduction of the negative deposit rate in the ECB and because of the following release of FOMC’s meeting minutes. These minutes also pointed out a possibility of negative rates on the Fed’s excess cash. Today the markets are worried about the following news: the biggest US banks wrote that should negative interest rates on excess cash be introduced they would be more…

Ready for vigorous movements?

By GG Analyst in Reviews 0 Comment

EUR/USD

Stock markets continue their upsurge. For advocates of technical analysis it should be important that EURUSD closed the week above 1.3500 and even went beyond the starting level of Wednesday’s correction. At the same time stock markets managed to close near the psychological levels of 16000 and 1800 in Dow and S&P 500 accordingly. It happened due to the favourable US statistics combined with rather dovish claims of the Fed’s high officials. Yet, as you remember, the euro ran a correction on the comments about possible introduction of the negative deposit facility rate by the ECB and the Fed’s minutes, according more…

The markets quickly recovered from the meeting minutes

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency couldn’t stay below 1.3400 for long. Bulls came to their senses and under the cover of the favourable EU statistics were purchasing the euro. The poor rate of France’s Manufacturing PMI (47.8 against the expected 49.6) was pushed into the background by Germany’s manufacturing stats, which proved to be better than forecasted (52.5 against the expected 52.3). The services sectors of these countries also performed below and beyond expectations accordingly. The flash index for the entire eurozone hit the level of 51.5 in November, which  is slightly better than the October rate of 51.3 and slightly worse than more…

The ECB and Fed are getting farther from each other

By GG Analyst in Reviews 0 Comment

EUR/USD

The CBs of the world’s biggest economies keep moving in the opposite directions. The main currency pair received a double blow yesterday. It was somewhat unexpected as occurred neither on the publication of the Fed’s meeting minutes nor the release of statistics. Advocates of the technical analysis could triumph yesterday. For 10 trading sessions the single currency had been moving inside the narrow ascending channel and, as a result, had driven the pair in the overbuy zone, so when a correction broke the support of the uptrend (1.3510), it intensified the decline. Eventually, the movement carried the pair away to 1.3413 more…